Analyst Allen Klee of Maxim Group maintained a Buy rating on RDE (GIFT – Research Report), retaining the price target of $4.00.
Allen Klee has given his Buy rating due to a combination of factors including Giftify’s strong revenue growth and strategic positioning in the secondary gift card market. The company reported a 12% year-over-year increase in revenue for the fourth quarter of 2024, surpassing expectations, which was bolstered by a successful holiday season. Giftify’s platforms, CardCash and Restaurant.com, are seen as valuable assets that provide cost savings and unlock lost value for customers, contributing to a positive outlook.
Additionally, Klee anticipates continued revenue growth driven by enhanced sales and marketing efforts, increased brand recognition, and cross-selling opportunities. The company’s efforts to optimize operations are expected to lead to gross margin expansion, particularly as Restaurant.com becomes a larger part of the revenue mix. Despite a current adjusted EBITDA loss, the expectation of positive adjusted EBITDA by 2026, coupled with sufficient capital resources, supports the Buy rating. The stock’s valuation, trading at a low revenue multiple, and a price target based on a 10-year discounted cash flow model further reinforce this positive assessment.
According to TipRanks, Klee is an analyst with an average return of -19.4% and a 23.34% success rate. Klee covers the Technology sector, focusing on stocks such as Intelligent Protection Management, JetAI, and T Stamp, Inc. Class A.